"I believe the past secretary-general signed it in good faith in order to make the project move faster. There is no element of graft here," Arif told a town hall session on the latest Auditor-General Report in Putrajaya today.
Arif's predecessor was Datuk Seri Mohd Hisham Abdullah, who currently serves as deputy chairman at the Election Commission (EC).
According to regulations, a secretary-general can only sign off a contract with a maximum value of RM100 million.
Arif admitted that the secretary-general should have sought the minister's authority to transfer power to the secretary-general to sign off a contract over RM100 million.
Arif said government agencies are making sure that the transfer of power is in place before such projects are signed in the future.
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